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AXA UK profits up 28% on the back of strong commercial showing

AXA saw its underlying profit in the UK and Ireland rise by 28% for the first half of this year compared to the same period last year.

The H1 results showed underlying profits of £145m and a combined operating ratio (COR) of 97.2%. This compared against a £113m profit for H1 2017 and a COR of 98.4%.

In personal lines, revenues fell from 814m in H1 2017 to £797m, but overall revenues were up 2% due to a strong performance in commercial and healthcare.

Results highlights

· UK & Ireland revenues up to £2.5bn (H1 2017: £2.4bn)

· Underlying earnings up 28% to £145m (H1 2017: £113m)

· UK & Ireland COR – 97.2% (H1 2017: 98.4%)

· Personal lines revenues - £797m (H1 2017: £814m)

· Commercial lines revenues - £730m (H1 2017: £690m)

· Healthcare revenues - £908m (H1 2017: £885m)

Growth: UK and Ireland 2%, Commercial 6%, Healthcare 3%

Bertrand Poupart-Lafarge, chief finance officer and interim chief executive of AXA UK & Ireland, said: “Despite turbulent conditions, we have performed strongly during the first six months of 2018, with underlying earnings up by almost 30%.

”Our commercial business experienced growth in motor and property aided by a robust performance by our revamped schemes proposition - where we partner with brokers to help them find and grow new areas of business.

”Our commercial direct SME business has also had a positive six months with the relaunch of our Business Guardian Angel service and our continued work on making insurance easier for micro SME customers.

“While healthcare increased its number of small corporate and personal customers, it has also continued to be one of the most innovative parts of our business, partnering with start-ups to develop new propositions.

”It has developed Realise in partnership with LiveSmart – which combines remote GP, home blood testing and coaching in one place - and has worked alongside Equipsme to launch an innovative affordable healthcare offer for small businesses.

“Meanwhile, in Ireland, we passed one million customers and also introduced online farm insurance quotations– a first for the country.

“The personal lines market has been challenging in the first half of the year due to unfavourable weather coupled with the uncertainty surrounding the personal injury discount rate and consequent market contraction.

”However, AXA has one eye firmly on the future and our recent partnerships with Brolly, a digital personal insurance assistant, and By Miles, a new pay-as-you-drive telematics proposition are excellent examples of this.

“Above all, we continue to improve profitability while seeking new and innovative ways to serve our policyholders to continue our journey from being a payer of claims to becoming true partners of our customers.”